Student loans are some of the most expensive loans that an individual will have in their lifetime. Not only does it remind them of the cost of their higher education but it can also cost hundreds of dollars in interest and penalties per month. However, if you do not repay your student loans, your credit report will be damaged and you may even face wage garnishment.
That being said, when a student who has recently graduated or one who has graduated long ago asks “How do I get money to pay off my student loans?”, the question is not always easily answered. There are many different situations with living arrangements and even the amount due for your student loans. The best solution to finding funds to pay off student loans is to have a steady job.
Jobs provide a source of income that will allow you to meet your monthly payment on your student loan. Most loans do not require payment the first six months after you graduate while you get your life set up. They may also allow you to defer payment in the future, based upon certain life events such as loss of job or severe illness. However, do not plan on being able to defer, focus on paying off your student loans at all costs.
Another great way to pay off student loans is to use a tax refund. Tax refunds can be applied to your next year’s taxes but the interest that you are paying on your student loans is a much better route to go. Whether you want to apply it all at once or spread it out through monthly payments, having a tax refund go to pay student loans is a great idea.
Yet another way to pay off student loans is through a consolidation loan. While your student loan may be at a low interest rate, you may be able to take out a lower interest rate loan at a bank locally. This should only be done if you know what you are doing and have consulted a financial adviser.
Otherwise, rolling your student loans and paying them off with a consolidation loan can leave you over extended without any recourse. It is simply a better idea to use your weekly or biweekly paychecks and pay off your student loans as quickly as you can.